Dolby Laboratories, Inc. (DLB) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Duolingo, Inc.

Informatica, Inc. (California)

Smartsheet, Inc.

ZoomInfo Technologies, Inc.

Qualys, Inc.

Tenable Holdings, Inc.

SPS Commerce, Inc.

Confluent, Inc.

Dolby Laboratories, Inc.

CyberArk Software Ltd.

New Relic, Inc.

Why is Dolby Laboratories, Inc. ?

Company has a low Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 2.52% and Operating profit at 3.12% over the last 5 years

Flat results in Jun 25

PRE-TAX PROFIT(Q) At USD 54.97 MM has Fallen at -33.05%
NET PROFIT(Q) At USD 45.61 MM has Fallen at -31.39%
CASH AND EQV(HY) Lowest at USD 1,507.67 MM

With ROE of 10.42%, it has a attractive valuation with a 2.80 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -17.89%, its profits have risen by 13% ; the PEG ratio of the company is 2.7

Below par performance in long term as well as near term

Along with generating -17.89% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Dolby Laboratories, Inc. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Dolby Laboratories, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Dolby Laboratories, Inc.

-17.89%

-0.68

24.34%

S&P 500

13.22%

0.65

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.52%

EBIT Growth (5y)

3.12%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.29

Sales to Capital Employed (avg)

0.53

Tax Ratio

18.15%

Dividend Payout Ratio

44.61%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

17.26%

ROE (avg)

10.34%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.80

EV to EBIT

22.83

EV to EBITDA

17.08

EV to Capital Employed

3.52

EV to Sales

4.89

PEG Ratio

2.73

Dividend Yield

1.71%

ROCE (Latest)

15.43%

ROE (Latest)

10.42%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 465.54 MM

DIVIDEND PER SHARE(HY)

Highest at USD 2.75

RAW MATERIAL COST(Y)

Fallen by 1.83% (YoY

-5What is not working for the Company

PRE-TAX PROFIT(Q)

At USD 54.97 MM has Fallen at -33.05%

NET PROFIT(Q)

At USD 45.61 MM has Fallen at -31.39%

CASH AND EQV(HY)

Lowest at USD 1,507.67 MM

Here's what is working for Dolby Laboratories, Inc.

Dividend per share

Highest at USD 2.75 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Operating Cash Flow

Highest at USD 465.54 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Raw Material Cost

Fallen by 1.83% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Dolby Laboratories, Inc.

Pre-Tax Profit

At USD 54.97 MM has Fallen at -33.05%

over average net sales of the previous four periods of USD 82.1 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 45.61 MM has Fallen at -31.39%

over average net sales of the previous four periods of USD 66.48 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Cash and Eqv

Lowest at USD 1,507.67 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents